Use the Information for the Question(s)below

question 20

Multiple Choice

Use the information for the question(s) below.
Suppose the market portfolio's excess return tends to increase by 30% when the economy is strong and decline by 20% when the economy is weak.A type S firm has excess returns that increase by 45% when the economy is strong and decrease by 30% when the economy is weak.A type I firm will also have excess returns of either 45% or -30%,but the type I firm's excess returns will depend only upon firm-specific events and will be completely independent of the state of the economy.
-What is the Beta for a type I firm?

• A)1.0
• B)0.75
• C)0.0
• D)1.5

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Children Under 18

Refers to individuals who are below the age of 18, typically considered as minors in many legal jurisdictions.

Individuals Over 65

People who are aged 65 years and above, often considered as senior citizens.

Supplemental Nutrition

Assistance provided to individuals and families to afford nutritionally adequate diets, often through government programs.

Administrative Costs

Expenses associated with the general operation of a business, including costs related to management, legal services, and office supplies, that do not directly contribute to production.